Sales management and agent training and Sales management and agent training and motivationmotivation

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TopicsTopics

Individual agent channelIndividual agent channel

Sales management strategySales management strategy

Agent training and motivationAgent training and motivation

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Stable individual agent force: a competitive advantageStable individual agent force: a competitive advantage

Number of life insurance agents in China since 2003

143.2 139.6 135.5 137.665.26466.865.5

47%47%48%46%

020406080

100120140160

0%20%40%60%

Total Agents CL Agents % of CL Agents

Total Agents 143.2 139.6 135.5 137.6

CL Agents 65.5 66.8 64 65.2

% of CL Agents 46% 48% 47% 47%

FY03 FY04 FY05 FY06

China Life’s individual agents accounts for nearly half of the total life insurance agents in China.

Stable sales force drives continuous growth.

*

* Note: The number of insurance agents of 2003 included both life insurance and non-life insurance agents.Source of data: CIRC

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Quality of our agents improves continuouslyQuality of our agents improves continuously

Current individual agents at about 650,000

Improving quality -94% of agents are licensed

Number of insurance agents, and percentage of licensed agents

65.5 66.8 64 65.2

41.648.1 50.7

60.994%

79%72%64%

0

20

40

60

80

2003 2004 2005 20060%

20%

40%

60%

80%

100%

Sales Number Qualif ied Holders Rate of Qualif ied Holders

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Solid training support to guarantee fast agent team growthSolid training support to guarantee fast agent team growth

1200

6000

8000

950

8400

9300

1100

8400

12000

1300

9200

15000

2003 2004 2005 2006

trainers agent supervisors distribution network

• Growing distribution network and strong sales team management

• Strong support for sales team development via structured trainings and sufficient pool of instructors and supervisors

Trainers, agent supervisors and distribution network

* Source of data: China Life annual reports

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Designated sales channels at all levels Designated sales channels at all levels

Other Dept. in Headquarters

Individual insurance

Dept.

Other Dept. in Provincial branch

Other Dept. in city-level branch

Provincial Branch

City-level branch

Headquarters

Responsibilities of individual insurance dept. at different levels

Policy-making and sales planning

Plan and implement the promotional plans

Develop and promote sales support tools

Build a training system and implement training programs

Strengthen sales risk management

Explore new sales channels and mechanism

Sales Team

County-level branches/ field offices

Individual insurance

Dept.

Individual insurance

Dept.

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TopicsTopics

Individual agent channelIndividual agent channel

Sales management strategySales management strategy

Agent training and motivationAgent training and motivation

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Market targetingMarket targeting

Mass marketMass market：：current current sales teamsales team

““OrphanOrphan”” policy marketpolicy market：：collection and repeat sale collection and repeat sale teamteam

High netHigh net--worth market:worth market:HighHigh--end sales teamend sales team

Reform the current team, establish a collection and repeat sale team, expand the high-end team

The three sales groups fully cover major markets, ensuring balanced and focused business development

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Combining strategies to drive growthCombining strategies to drive growth

Organize team bonding activities

Plan promotional

events

Marketing Marketing StrategyStrategy

DemandDemand--drivendriven

Channel Channel strategystrategy

Sales Sales access access

Launch “Affinity with China Life” promotional plan

Plan “insurance in neighborhoods” related activities

Plan for China Life “Client Date”

Olympic-related incentive plans

Company-wide video agent morning briefing

Annual summit for sales over- performers

Stock appreciation rights for star agents

Reward program combined with agent pension products

Medical insurance to sales team

Strategy Strategy combinationcombination Key initiatives Key initiatives ExamplesExamples

Enhance long-term

motivation plans

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Standardize operations and improve efficiencyStandardize operations and improve efficiency

Agents:Appointments, interviews, prospect information, proposal

Supervisors:Customized support, joint visit，telephone review, follow up

Sales office:Provide logistical and administrative supports and trainings, motivation, etc.

“Jin Ding Project”Build a management Build a management structure and improve structure and improve productivityproductivity

Cross training Learning through sharing Learning through sharing knowledge among the knowledge among the sales teams, implement sales teams, implement standard operational standard operational modelmodel

Streamline workflow Standardize and quantify Standardize and quantify company objectives, company objectives, process management to process management to enhance efficiency of the enhance efficiency of the whole networkwhole network

1. Individual agent 1. Individual agent

2. Agent group2. Agent group

3. Distribution network3. Distribution network

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Innovative sales supportInnovative sales support

Sales Support System

Agent Activity Management System

Web Audio-visual System for Sales Outlets

Agent Recruiting and Selection System

Leverage advanced IT Leverage advanced IT capabilities, professional capabilities, professional experience, agent channel experience, agent channel

developmentdevelopment

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DemandsDemands--driven product packagesdriven product packages

2003

2004

Upscale

EndU

rban D

istrict

s

Rural

Areas

2006

Demand-driven mass marketing

Promoting sound insurance concepts

Focusing on regular-premium development

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TopicsTopics

Individual agent channelIndividual agent channel

Sales management strategySales management strategy

Agent training and motivationAgent training and motivation

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Solid education and trainingSolid education and training

New Recruit Agent Team managerCareer path

•Career orientation, exam prep course, on-duty training, assisted prospecting, continuous training, etc.

Levels

• Professional and ethical standards

•Need-based marketing

•Prospects identification

•Telemarketing and client service

•Career training

•Management skills

• Agent recruitment skills

•Meeting skills

•Full event management

Qualification exam

Educational requirement

Junior College, University, MBA (affiliated with Peking UniversiJunior College, University, MBA (affiliated with Peking University and ty and Insurance Career College), China Life EInsurance Career College), China Life E--learning Collegelearning College

•Agent Qualification Exam

•Financial advisor exam

•Designation exam •CIAM

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Comprehensive training systemComprehensive training system

Comprehensive program of 63 courses (1,673 hrs) covering policy marketing, business management, financial management and teaching methods

Industry credential including CIAM since 2004， 600 team managers have enrolled in the Level III courses

“Jin Ding Project”, trainer’s skills contest, workshop and seminar on new products, sales experience sharing

Structured program

Non-structured program Overseas program

The company has established a comprehensive training and career development courses to provide multi-level training for agents,

team managers, agent trainers, agent supervisors and other staff.

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Ways to attract and retain agentsWays to attract and retain agentsMain incentives

•Agent management System

•Elite Agent Club•Stock Appreciation Rights•Pension and health insurance coverage•Performance ranking and rewards•Other theme events

Motivation system

Com

panyIndustryIndustry

• “Dual Star” Conference • Chinese Insurance Conference

• Annual Dragon Conference

• MDRT• IQA、IAP

•Long vs. short-term incentives

•Industry recognitions and internal rewards

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LongLong--term Incentive Schemesterm Incentive Schemes

Compensation• Individual: FYC,

renewal commission, awards

• New recruit training allowance

• Management allowance, base salary

• New recruit allowance

Performance appraisal

Incentive StructureCompensation Structure

CommissionCommission IncentiveIncentive

New recruitsNew recruits

Retained agentsRetained agents

Junior managerJunior manager

Middle Middle managementmanagement

Senior Senior managementmanagement

A competitive income and career development path will motivated agent managers to build a strong agent team

A fair commission and incentive structure retains and develops astable sales force

• Individual and/or team FYC, renewal premium collection rate, team structure